Trump son-in-law Jared Kushner part of hostile takeover bid for Warner Bros. Discovery
CBC
Jared Kushner's financing role in Paramount's $108 billion US bid for Warner Bros. Discovery injects Trump-family interests into one of the biggest media battles in years, raising concerns over whether the president's influence could tip the scales.
Paramount Skydance on Monday launched a hostile bid for Warner Bros. Discovery in a last-ditch effort to outbid Netflix, which had announced a merger late last week, and create a media powerhouse.
Paramount said its offer includes financing from Kushner's investment firm Affinity Partners, along with financing from the Saudi and Qatari sovereign wealth funds and L'imad Holding Co, owned by Abu Dhabi.
U.S. President Donald Trump told reporters on Monday that he has not spoken with Kushner —who is married to Trump's daughter, Ivanka — about Warner Bros. Discovery, adding that neither Netflix nor Paramount "are friends of mine."
A day earlier, Trump said he would be involved in a decision on Netflix's proposed acquisition of Warner Bros. studios and streaming assets.
The Wall Street Journal reported Monday night that billionaire Larry Ellison — whose son David is CEO of Paramount Skydance — called Trump after Netflix's deal to buy Warner Bros. Discovery's TV, film studios and streaming division for $72 billion US was announced on Friday, and told him the transaction would hurt competition.
Both Paramount and Netflix are likely to face intense antitrust scrutiny to ensure consumers, rivals and suppliers are not hurt by any tie-up, giving the government a big say in who ultimately buys Warner Bros. Discovery.
The extent of Trump's involvement will be another test of how far the president — whose family business interests have grown while he has been in office this year — is prepared to go in breaking conflict-of-interest norms.
"If you were teaching a class at business school on conflicts of interest, this would be Exhibit A," said Nell Minow, chair of Portland, Maine-based ValueEdge Advisors. She said Trump should recuse himself from any involvement in the deal clearance.
Spokespeople for the White House and for Affinity Partners did not immediately respond to requests for comment.
While U.S. presidents are exempt from the federal conflict of interest law, "normally, what we see is presidents separating themselves from their own businesses and going out of their way not to be involved with their family's businesses to not have Americans questioning their actions," said Jordan Libowitz of Citizens for Responsibility and Ethics in Washington.
The antitrust unit of the U.S. Justice Department will review the final deal for Warner Bros. Discovery to ensure it does not harm competition in the media market, while keeping consumer prices in check and ensuring that advertisers have a fair marketplace.
Kushner served as a White House adviser during Trump's first term, and has continued to be involved in Middle East policy during Trump's second administration, though he does not have an official title.
Questions about whether Kushner has benefited from his father-in-law's presidency have been raised before.
